Atlanta, Georgia. Photo Credit: Brad Huchteman
Back in May, Sony Music Publishing (SMP) signed songwriter Ashley Gorley to a global deal “in partnership with” Atlanta-based investment firm Domain Capital Group. Now, Domain says it’s pulled down $700 million in “equity commitments” for its entertainment fund.
Domain Capital (along with its Domain Capital Advisors subsidiary) just recently announced the “more than $700 million” worth of commitments via a formal release. With $170 million having already been spent, Domain reiterated that it will look to invest the remaining capital in film, television, and music moving forward.
The focus on music is relatively new, for higher-ups also took the opportunity to note that a previously deployed $830 million fund had “primarily” targeted film and television assets. Moreover, execs appear open to making certain plays outside the three above-listed entertainment areas, for they acknowledged an “allocation for other related investment opportunities.”
But specifically on the music front, Domain Capital is set to join an array of other companies in continuing to scoop up song rights, besides participating in “long-term partnerships in a variety of structures in order to support the creation of new content,” according to the release.
Addressing the $700 million fund’s official launch in a statement, 12-year Domain Capital executive managing director Anthony Tittanegro touted the entertainment space’s perceived long-term potential as an investment class.
“We are excited to launch our first diversified private entertainment royalty fund,” he said. “At a time of sustained entertainment industry growth supported by an ever-evolving landscape of distribution channels, we are focused on building a diversified asset-base to generate cash yield and help maintain our investors’ capital.”
Notwithstanding the difficult economic climate and some signs of a slowdown in the previously red-hot catalog sphere, song-rights deals are continuing to pour in.
After indicating in October that it planned to close a whopping $600 million in music-IP purchases before 2022’s conclusion, Primary Wave yesterday (following a massive investment from Brookfield as well as CAA) unveiled a “multi-million-dollar” deal for the catalog of Huey Lewis and The News.
October also saw Reservoir Media buy the rights to songwriter Louis Prima’s body of work, and Influence Media Partners scored a deal with Blake Shelton. September delivered an array of different transactions yet – including Concord’s reportedly $300 million agreement for the recorded and publishing catalogs of Genesis – and Pink Floyd is reportedly continuing to negotiate its own long-rumored deal despite encountering several unforeseen obstacles along the way.